Guidance Note 8.4
As stated in Principle 8 : Level and Mix of Remuneration of the Corporate Governance Statement in the Annual Report, each of the executive Directors has a formal service agreement which is valid for an initial period of 3 years commencing from 1 July 2002 and shall be automatically renewed on a yearly basis. There are no excessively long or onerous removal clauses in these service agreements. The service agreements may be terminated by the Company giving the executive director one month's notice in writing or, in lieu of notice, payment of one month's salary based on the executive director's last drawn salary. The Remuneration Committee has not yet had the opportunity to review the service agreements as they were entered into prior to the Initial Public Offering of the Company.
Guidance Note 10.2
As stated in Principle 10 : Accountability of the Corporate Governance Statement in the Annual Report, the management currently provides the Board with appropriately detailed management accounts of the Group's performance, position and prospects on a half-yearly basis. However, the management has been providing all the executive directors (who represent more than 60% of the Board) with monthly consolidated financial reports, and is of the view that the monthly consolidated financial reports would not be reflective of the true and fair view of the financial position of the Company.